BILL ANALYSIS Ó AB 1066 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1066 (Gonzalez, et al.) As Amended August 17, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | |(June 2, 2015) |SENATE: | |(August 22, | | | | | |21-14 |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- (Vote not relevant) Original Committee Reference: P.E.,R. & S.S. SUMMARY: Enacts the Phase-In Overtime for Agricultural Workers Act of 2016, as specified. The Senate amendments delete the contents of the bill and instead: 1)Provide that, beginning July 1, 2019, any person employed in an agricultural occupation shall not be employed more than nine and one-half hours in any one workday or work in excess of 55 hours in any one workweek, unless the employee receives one and one-half times that employee's regular rate of pay for all hours worked over nine and one-half hours in any workday or over 55 hours in any workweek. This requirement shall AB 1066 Page 2 apply to an employer who employs 25 or fewer employees commencing January 1, 2022. 2)Provide that, beginning January 1, 2020, any person employed in an agricultural occupation shall not be employed more than nine hours in any one workday or work in excess of 50 hours in any one workweek, unless the employee receives one and one-half times that employee's regular rate of pay for all hours worked over nine hours in any workday or over 50 hours in any workweek. This requirement shall apply to an employer who employs 25 or fewer employees commencing January 1, 2023. 3)Provide that, beginning January 1, 2021, any person employed in an agricultural occupation shall not be employed more than eight and one-half hours in any one workday or work in excess of 45 hours in any one workweek, unless the employee receives one and one-half times that employee's regular rate of pay for all hours worked over eight and one-half hours in any workday or over 45 hours in any workweek. This requirement shall apply to an employer who employs 25 or fewer employees commencing January 1, 2024. 4)Provide that, beginning January 1, 2022, any person employed in an agricultural occupation shall not be employed more than eight hours in any one workday or work in excess of 40 hours in any one workweek, unless the employee receives one and one-half times that employee's regular rate of pay for all hours worked over eight hours in any workday or over 40 hours in any workweek. This requirement shall apply to an employer who employs 25 or fewer employees commencing January 1, 2025. 5)Provide that the term "employed in an agricultural occupation" has the same meaning as in a specified Wage Order of the Industrial Welfare Commission. 6)Provide that, beginning January 1, 2022, any work performed by a person employed in an agricultural occupation in excess of AB 1066 Page 3 12 hours in one day shall be compensated at the rate of no less than twice the employee's regular rate of pay. This requirement shall apply to an employer who employs 25 or fewer employees commencing January 1, 2025. 7)Provide that all other provisions of existing law regarding compensation for overtime work shall apply to workers in an agricultural occupation beginning January 1, 2017. 8)Beginning in 2018, authorize the Governor to temporarily suspend the scheduled phase-in of overtime requirements set forth above if the Governor suspends scheduled minimum wage increases for specified "economic conditions" under provisions of law enacted this year pursuant to SB 3 (Leno), Chapter 4, Statutes of 2016. This authority shall end upon the final phase-in of overtime provisions or January 1, 2025, whichever comes first. 9)Require the Department of Industrial Relations to update Industrial Welfare Commission Wage Order 14 to be consistent with this bill, except that any provisions of existing law applicable to persons employed in agriculture providing greater protections or benefits to agricultural employees shall continue in full force and effect. 10)Make related legislative findings and declarations. FISCAL EFFECT: According to the Senate Appropriations Committee, the Department of Industrial Relations indicates that it would incur administrative costs of in the range of $326,000 to $586,000 in the first year and $311,000 to $563,000 annually thereafter. COMMENTS: This bill is sponsored by the United Farm Workers (UFW), who argues that farm workers engage in back-breaking work every day. Few occupations in today's America are as physically AB 1066 Page 4 demanding and exhausting as farm work. Yet no job in America requiring such demand on the human body pays less for a long day's work than what this bill is asking for farm workers. UFW states that is has been 77 years since farm workers were excluded from the wage protections and maximum hour standards through the enactment of the federal Fair Labor Standards Act. Excluding farm workers is part of our country's shameful legacy that initially targeted African-Americans who were farm workers in the 1930s. They argue that excluding farm workers from overtime was wrong in 1938, and is wrong today. A coalition of agricultural employers and others opposes this bill, arguing that, because farmers, their employees and their operations are critically affected by the uncontrollable whims of nature and the seasonality of agricultural production, agriculture needs greater flexibility in scheduling work than do other industries. Opponents note that California is one of only a few states that require premium pay for overtime worked by farm workers. California's regulation is one of the most generous in its coverage and requires agricultural workers receive overtime pay for hours worked over 10 in a workday. Opponents also believe this bill will backfire, hurting family farmers and cutting agricultural workers' paychecks. They contend that farmers will likely avoid the additional costs imposed by this bill by limiting worker hours and hiring more farm workers to make up the difference whenever possible. This bill is similar to AB 2757 (Gonzalez), which failed passage on the Assembly Floor earlier this year. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0004404 AB 1066 Page 5